real party in interest

real party in interest definition - business

real party in interest

The person or entity that will benefit from a successful court action. For example, an insurance company reimburses an insured business for fraud committed by an employee. The insurance company then sues the employee for recovery in the name of its insured client. In this instance, the insurance company will benefit from any recovery and is the real party in interest. Also called party in interest.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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